Gamma Company is considering an investment opportunity with the following expected net cash inflows: Year 1, $250,000; Year 2, $350,000; Year 3, $395,000. Residual value of the investment would be $50,000. The company uses a discount rate of 12% and the initial investment is $400,000. Calculate the NPV of the investment.
Present value of $1:

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The Answer of Gamma Company is considering an investment opportunity with the following expected net cash inflows: Year 1, $250,000; Year 2, $350,000; Year 3, $395,000. Residual value of the investment would be $50,000. The company uses a discount rate of 12% and the initial investment is $400,000. Calculate the NPV of the investment.
Present value of $1:

Gamma Company Is Considering an Investment Opportunity with the Following